DSV has announced that its acquisition of Panalpina will finally be completed today in a deal worth $5.5bn.
The combined company will be recognised as DSV Panalpina and the merger will result in the creation of the second-largest airfreight provider in the world.
Panalpina is a provider of supply chain solutions with 14,500 employees in 70 countries.
After the merger, the workforce will be 60,000 and the company will have a presence in 90 countries. Revenue is expected to be DKK118bn per year.
Settlement will be carried out during the course of today in accordance with Swiss market practices.
“It’s a great day today – we’ve been waiting for this day for a long period of time,” said DSV chief executive Jens Bjørn Andersen in a conference call today.
“We have been working extremely hard since we first announced the deal on April 1. Both sides have done a remarkable job.”
“As of today, we are one company, which means that we are now the second-largest provider of airfreight in the world. We are also now the third-largest provider of seafreight and we retain our position as the fourth-largest provider of road freight.”\
Upon completion of the acquisition, Kurt Kokhauge Larsen will become chairman and Andersen, Jens Lund and Thomas Stig Plenborg will become members of the Panalpina board.
DSV will have full control over Panalpina, and Andersen and Lund will become chief executive and chief financial officer, respectively (taking over from Stefan Karlen and Robert Erni).
DSV Panalpina will provide an outlook for the rest of the year in its third quarter 2019 financial report, on November 1. It will provide a long-term company outlook in 2020.
The entire integration period is expected to take two-three years, with most of the operational integration being completed within two years.
“As we move forward with the integration, it is our firm intention that our customers continue to experience an uninterrupted, high level of service,” DSV said.
DSV expects to achieve annual cost synergies of around DKK 2.2bn. The cost synergies are expected to have full-year effect by 2022 and will primarily be derived from the consolidation of operations, logistics facilities, administration and IT infrastructure.